A ROSEY SCENARIO IS DUMBFOUNDED

WMT stock declining SHARPLY!!! Ignored by bulls! If $40 falls, not much support down to $30 !!!

WHY is WMT weak? How can we rally without WMT?

LOOK at SPX/VIX ratio, it has topped out 30% higher than in 2000 MANIA! yet prices are much below the top. Not heading down in earnest....yet. (vix is volatility index)

Debt as shown is FAR from shaded area. Shaded area was recovery after LAST Kondratieff Winter which followed then historic debt explosion and then record credit expansion.

And NOW? you can see! if you want to. SAVINGS at HISTORIC low neg .6% since they began to keep records.

NVLS stock: from AUG

SAN FRANCISCO (MarketWatch) - Novellus Systems Inc. said late Wednesday it will close an Arizona plant as part of plans to combine some manufacturing operations, a plan that will cause the chip-equipment maker to incur charges for the next four quarters.

AND:

Novellus said it will absorb a non-cash charge in the third quarter for the "write-down of inventory and certain fixed assets previously used to support the discontinued products," according to the filing.
Cash charges are expected for the termination of employee benefits and non-cash charges are planned for equipment depreciation costs, the company noted.
The decision to close the plant comes on the heels of a weaker order forecast for the September ending quarter. In its midquarter update Tuesday, Novellus narrowed the range of its third-quarter bookings to $285 million to $290 million. The company said orders it had expected for September are likely to be made in October. See full story.

***I believe that companies are RAMPED up for XMAS, tons of KRAP cell phones gadgets in PIPELINE, tons of inventory, and I also feel writedowns are surely in our future as it is already evident from plumetting consumer confidence and action at WMT, that a HUGE XMAS RUSH is unfounded and sights set too high.

SEPT jinx is being ignored as lemmings rush in to BUY! even with history of bad things happening in SEPT/OCT period a KNOWN.

Katrina will NOT be BULLISH, it has DESTROYED things, the avg populace there was POOR, not gadget computer buying folk! GOV spending needs to be CUT from somewhere else to help pay for its rebuilding. It wont get rebuilt overnight, it will get spread out. MANY cannot afford to rebuild, let alone refurnish.

Gasoline is falling, but interest rates and gold are rising fueling fears of inflation, will the FED heed and continue raising to fend off supposed inflation from supposed Katrina bull s? to prorect US$

Far from a perfect scenario IMHO be careful

Duratek